Datuk James Ligunjang
KOTA KINABALU: Datuk James Ligunjang said the Orders pertaining to the distribution of federal revenues owed to Sabah, are unconstitutional and do not serve any legal purpose for the state.
He pointed out that these orders are contradictory to the Federal Constitution as they only apply to Sarawak which has no percentage amount to be paid on an annual basis. In this regard, they are subject to periodic review every five years, as stated in Article 112D of the constitution.
The former Petagas assemblyman said Order P.U (A) 328/1970 and Order P.U(A)119/2022 should be revoked.
According to Ligunjang Order P.U (A) 328/1970 and Order P.U(A)119/2022 “are unconstitutional and do not serve any legal purpose for the state. According to Article 112C of the Federal Constitution, Sabah is entitled to receive 40 per cent of all federal revenues derived from the state on an annual basis.”
However, Ligunjang pointed out that these orders are contradictory to the constitution as they only apply to Sarawak which has no percentage amount to be paid on an annual basis. In this regard, they are subject to periodic review every five years, as stated in Article 112D of the Federal Constitution.
“Since Sabah has a specific entitlement of 40 per cent there is no need for any review as there is nothing to review, except for potential variations in the sources of income.”
“Therefore, these orders should be revoked or amended to conform to the constitutional requirement stipulated in Part IV of the Tenth Schedul,” Ligunjang said in a statement Friday.
He added that any payments received by Sabah since 1964 should be considered interim payments in compliance with the 40 per cent entitlement.
“On revocation of these orders, the Federal Government and State Government of Sabah should focus on discussing the terms of reference of the Federal Accountant General, State Accountant General, and Auditor Generals from both sides,” he said
Ligunjang, a Justice of Peace said this would facilitate the determination of the correct amount of entitlement owed to Sabah.
It is essential to establish the methodology and computation for determining the exact amount of entitlement due to the state since 1964. Any disputes regarding the methodology and computation should trigger the invocation of Article 112D(6) of the Federal Constitution, which allows for the appointment of an Independent Assessor.
He said it was crucial for the State Government of Sabah to seek the revocation of these orders and focus on determining the precise entitlement owed to the State of Sabah since 1964.
“It is crucial to ensure that Sabah receives its rightful share of federal revenues, which could amount to billions of dollars, to proceed with the development of the state, which is the poorest in Malaysia,” Ligunjang said.
Meanwhile, in a statement on Monday, Sabah Deputy Chief Minister Datuk Seri Panglima Dr Jeffrey Kitingan said a resolution to the longstanding 40 per cent revenue entitlement for Sabah can be expected in 12 months.
“The decision was made by the Technical Committee of the Malaysia Agreement 1963 (MA63), chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, which has agreed to adopt this resolution.
Dr Jeffrey said resolving this matter, which has been an issue for 58 years, is crucial in ensuring Sabah receives its rightful revenue rights entitlement.
Jeffrey, who is representing Sabah in the MA63 Committee, said the federal government is committed to fulfilling the outstanding constitutional rights.
“After waiting for over half a century, the people of Sabah deserve this moment, and it is our responsibility to ensure that the wait does not prolong any further,” he said.
